By Natalie R. – Gold continued its decline in European trading today, dropping to $1365 an ounce from an overnight price of $1372. The decline came as the dollar strengthened further versus the euro, as the ERU/USD pair reached a two week low of 1.3260.
The drop came as concerns intensified that Ireland’s debt problems will widen to Portugal and Spain. Though Gold prices still receive support from the euro-zone debt crisis as investors turn to the precious metal as an alternative investment, the strong dollar reduces the appeal of the metal as it makes it more expansive.
It seems that Gold has a strong support at $1365 an ounce, as the euro-zone debt concerns persist and the tension between North and South Korea remain in the background. Trading returned to normal market conditions today as U.S banks open after yesterday’s holiday, however, the lack of major news events will likely keep the markets subdued ahead of the weekend. Gold will likely remain between $1365 and $1372 for the remainder of the day.
Silver continues to follow Gold’s trading pattern, also seeing a decline in today’s trading, albeit it still remained within its recent range. Silver for immediate delivery declined to $27.25 an ounce, after briefly dropping to a low of 27.02. Silver, however, is still up overall this week. The price reached $29.36 an ounce on Nov. 9, the highest level since 1980.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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